Business

A Rescue and Reset Plan for Sri Lanka

Published

4 years ago

2022/06/25

by Sanath Nanayakkara

In the following interview given to The Island Financial Review, independent financial advisor and consultant Ranjith Wickremasinghe (Ranjith_@ymail.com) outlines what he describes as a Rescue and Reset Plan for Sri Lanka. Ranjith Wickremasinghe is a former chairman of the Sri Lanka Ports Authority and of the Ceylon Shipping Corporation.

What is the basic essence of your Rescue and Reset Plan for Sri Lanka – published on 14th April 2022 (ISBN 978-624-97686-5-9)?

Decades of fiscal deficits, trade deficits, balance of payment deficits, corruption, mismanagement, bad decisions, leakages, damage to our economic resources by pollution from SLiMDOE described below, and the loss of tourism income due to covid19 has caused the foreign debt to increase to US$ 60 billion from US$ 18 billion in 2009, leading to an untenable annual debt repayment US$7 billion.

In analyzing our strengths of the sea which is eight times bigger than our landmass, and our strategic location in the center of the Indian Ocean my research identified a hidden intrinsic asset which I have further researched, formulated, invented, monetized and published as the “Sri Lanka’s Multi-Billion Ocean-Air Expressway”, which I have named as SLiMDOE in my publication ISBN 978-624-97686-4-2 on 12th September 2021.

The carriage of 30% of world trade annually via 85,000 ocean and air crossings using the SLiMDOE short-cut across Sri Lanka and abutting the Dondra Head in the southern tip has enabled global economies to gain US$ 100 billion during the last decade whilst damaging our economy by an equal amount, which could be used as leverage to waive off our debt.

Basic Strategy of the Rescue and Reset Plan

1. Obtain a waiver on foreign debt repayments against the damage caused to our economic resources by pollution in using the SLiMDOE via a global initiative under the umbrella of the World Bank and UNDP. It is proposed that an interim waiver of debt repayments for 2022 and 2023 amounting to US$ 7 billion each are requested, pending discussions with the global economies and the creditors.

2. It is also imperative to obtain bridging finance of US$ 4 billion each for 2022 and 2023 needed to reset the stalled economy, from multilateral institutions and friendly countries.

3. Corresponding to the above “reset process” the GoSL is required to implement several other proposals to obtain a burst of development using the “South Sea of Sri Lanka”, to earn foreign exchange quickly, and to avert the present foreign exchange and the debt crisis. The full potential of export earnings could exceed US $ 20 billion per annum at full fruition enabling our economy to grow from US$ 84 billion in 2021 to over US$ 100 billion by 2026, detailed in my publication ISBN 978-624-97686-5-9.

These measures are expected to out wipe out the trade deficit of US$ Bn 8 to surplus of US$ Bn 2 by 2026 by increasing the exports from 2020 US$ Bn 10 to US$ 33 by 2026, and benefiting from the value addition, import substitution, and increased agricultural, fishery and livestock output, well over 100% by 2026.

Targets given are expected to turnaround the Sri Lankan economy to a GDP growth of 0.4 % in 2022, by 3% in 2023, 4% in 2024, 5% in 2025, 6% in 2026, and reduce the budget deficit from 11% in 2020 and 2021 to 6% of GDP by 2022, and to 3% by 2026, and substantially increase our external reserves and reduce our foreign debt. (As the relief measures are being delayed due to the present political impasse, this will cause a negative growth in 2022 than predicted above).

The UNDP recently proposed ‘debt-for-nature swaps’ to tackle Sri Lanka’s debt problem. This proposal from the UNDP came as Sri Lanka is getting ready to talk with its multiple creditors to restructure its debt. The International Rating Agency Moody’s has also expressed the view that it is wiser for Sri Lanka to explore this option. In another development, British Prime Minister Boris Johnson recently assured support to Sri Lanka for climate financing. In this context, do you think that Sri Lanka can leverage this opportunity to obtain such climate-related instruments to raise new funding as well as to forgo at least part of the country’s existing debt?

Yes, Sri Lanka can use my discovery, Sri Lanka’s Multi-Billion Dollar Ocean-air Expressway (SLiMDOE) as leverage to obtain a waiver on repayment of debt and obtain the bridging finance as per my concept published in September 2021, the principle of which has now has been reinforced by the UNDP and the British Prime Minister Boris Johnson.

Government tax revenue which recorded 12% in 2019 has fallen to 8% of GDP in 2020. It needs to be raised immediately and eased gradually as the economy grows as per your Plan. However, the private sector asks for a simplified tax structure and consistency in tax policy. The ordinary people want less indirect taxes and more direct taxes levied from the rich. How can we strike a balance between these two dynamics?

The President has stated that the reduction of taxes in 2020 was a mistake, and the new Prime Minister also holding the portfolio of Finance has already taken remedial aimed at correcting this situation. As the economy stabilizes during the tail end of the five-year period the corrections could be made appropriately to the ratio of direct to indirect tax.

According to your Rescue and Reset Plan for Sri Lanka, the government’s recurrent expenditure now standing at 17% of GDP needs to be brought down to 14% by end 2022, to help reduce the budget deficit now running at 11% of GDP. How can we do this in a sufficient and appropriate manner while protecting the country’s economic and public services interests?

Austerity has to start at the top, and has to percolate to the lower levels. We are a bankrupt nation; the carnival is over; we need to be lean and mean at the top and up to the bottom. We need to challenge every single item of expenditure based on “value for money” and lead by example. No more luxury living at the expense of the tax payer.Restructuring of SOEs is considered to be crucial for fiscal consolidation and Sri Lanka’s sustainable growth, but there’s a lot of resistance from trade unions to undermine such attempts. How can we achieve this against this backdrop?

All the CEO’s of SOE’s must be instructed to submit a five-year corporate plan and a financial plan immediately. All these plans must be evaluated by an expert committee who would give the policy direction. In this exercise the accounting and other professional bodies should be asked to volunteer their membership to assist in these evaluations to keep the costs to a bare minimum. All CEO, s must be given dividend targets.

Price of basic food and other essentials have increased from 30% to 80%. The poor has become poorer, and now have to skip meals. Do you think as a country running a twin deficit, Sri Lanka can provide relief to these vulnerable segments in the near future? If so, what’s the specific social safety net you propose?The dividends targets must be given to restructured SOE’s to finance the safety net of the poor.

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Business

Sri Lanka Customs exceeds revenue targets to enters 2026 with a surplus of Rs. 300 billion – Director General

Published

19 hours ago

2025/12/31

Priyan

The year 2025 has been recorded as the highest revenue-earning year in the history of Sri Lanka Customs, stated Director General of Sri Lanka Customs, Mr. S.P. Arukgoda, noting that the Department had surpassed its expected revenue target of Rs. 2,115 billion, enabling it to enter 2026 with an additional surplus of approximately Rs. 300 billion.

The Director General made these remarks at a discussion held on Tuesday (30) morning at the Sri Lanka Customs Auditorium, chaired by President Anura Kumara Dissanayake.

The President visited the Sri Lanka Customs Department this to review the performance achieved in 2025 and to scrutinize the new plans proposed for 2026. During the visit, the President engaged in extensive discussions with the Director General, Directors and senior officials of the Department.

Commending the vital role played by Sri Lanka Customs in generating much-needed state revenue and contributing to economic and social stability, the President expressed his appreciation to the entire Customs employees for their commitment and service.

Emphasizing that Sri Lanka Customs is one of the country’s key revenue-generating institutions, the President highlighted the importance of maintaining operations in an efficient, transparent and accountable manner. The President also called upon all officers to work collectively, with renewed plans and strategies, to lead the country towards economic success in 2026.

The President further stressed that the economic collapse in 2022 was largely due to the government’s inability at the time to generate sufficient rupee revenue and secure adequate foreign exchange. He pointed out that the government has successfully restored economic stability by achieving revenue targets, a capability that has also been vital in addressing recent disaster situations.

A comprehensive discussion was also held on the overall performance and progress of Sri Lanka Customs in 2025, as well as the new strategic plans for 2026, with several new ideas and proposals being presented.

Sri Lanka Customs currently operates under four main pillars, revenue collection, trade facilitation, social protection and institutional development. The President inquired into the progress achieved under each of these areas.

It was revealed that the Internal Affairs Unit, established to prevent corruption and promote an ethical institutional culture, is functioning effectively.

The President also sought updates on measures taken to address long-standing allegations related to congestion, delays and corruption in Customs operations, as well as on plans to modernize cargo inspection systems.

The discussion further covered Sri Lanka Customs’ digitalization programme planned for 2026, along with issues related to recruitment, promotions, training and salaries and allowances of the staff.

Highlighting the strategic importance of airports in preventing attempts to create instability within the country, the President underscored the necessity for Sri Lanka Customs to operate with a comprehensive awareness of its duty to uphold the stability of the State, while also being ready to face upcoming challenges.

The discussion was attended by Minister of Labour and Deputy Minister of Finance and Planning, Dr. Anil Jayanta Fernando, Deputy Minister of Economic Development, Nishantha Jayaweera, Secretary to the President, Dr. Nandika Sanath Kumanayake, Deputy Secretary to the Treasury, A.N.Hapugala, Director General of Sri Lanka Customs, S.P.Arukgoda, members of the Board of Directors and senior officials of the Department.

Business

Construction industry offers blueprint for Sri Lanka’s recovery

Published

20 hours ago

2025/12/31

Sahan Weerasooriya

Eng Nissanka N Wijeratne

The dawn of 2026 represents a time for critical recalibration, not just ceremony, for the nation’s vital construction sector, says Eng Nissanka N Wijeratne, Secretary General/CEO of the Chamber of Construction Industry (CCI).

In a New Year message, Wijeratne reframes the annual greeting as a strategic call to action. “For Sri Lanka’s construction industry – the true backbone of our economy – the turning of the calendar is an ideal moment for a realistic and forward-looking assessment,” he states.

His vision sketches a practical blueprint where the unprecedented challenges of the recent past become the foundation for a smarter, more sustainable future.

The industry, long considered a barometer of national prosperity, has weathered severe headwinds: economic volatility and spiraling material costs. “These were not mere business cycles, but unprecedented tests,” Wijeratne notes, acknowledging the severe strain on firms and professionals. Yet, the sector’s response, he observes, has been “nothing short of remarkable,” showcasing a deeply ingrained resilience.

The Chamber’s chosen theme for the year, “Resilience through Innovation,” signals a pivotal shift from enduring hardship to actively engineering progress.

The pathway forward, Wijeratne outlines, is built on three interdependent pillars.

First is the revitalization of Infrastructure. “This is not a simple call for new projects,” he clarifies, “but a strategic push to reactivate stalled ventures and initiate sustainable developments in concert with the government and international agencies.” He emphasises that construction activity is intrinsically linked to the broader economy’s pulse, where resuming projects catalyses employment, energises supply chains, and restores public confidence.

The second pillar, technological Integration, addresses the urgent need to modernise the sector’s core. Advocacy for Building Information Modeling (BIM), green building practices, and digital project management is a direct answer to past inefficiencies. “It is a commitment to ensuring Sri Lankan construction is not just rebuilt, but upgraded becoming more competitive, cost-effective, and environmentally responsible,” Wijeratne says. ” Innovation must move from slogan to practice, transforming how the nation conceives, builds, and maintains its infrastructure,” he notes.

The third pillar, consistent policy advocacy, underpins all efforts. The Chamber positions itself as a vital intermediary, fighting for fair pricing mechanisms, streamlined regulations, and a protective framework for local contractors. Wijeratne stresses that the best-laid plans of engineers can falter without a conducive policy environment, calling for a strengthened partnership with the state to create a level playing field where skill and enterprise determine success.

Ultimately, Wijeratne’s message is a powerful reminder of the industry’s profound legacy. “When we build, the nation grows,” he states, elevating construction from a commercial activity to a national mission. The structures that rise from the ground are more than concrete and steel; they are the schools, hospitals, roads, and homes that shape the nation’s future.

As Sri Lanka steps into 2026, the construction industry’s message is clear: it is ready to transform resilience from a trait of survival into a dynamic force for innovation.

The past challenges, according to Wijeratne, have been met with grit. Now, the future must be built with vision.

By Sanath Nanayakkare

Business

Expo Commodities and STAY Naturals honoured at the Presidential Export Awards 2024/25

Published

20 hours ago

2025/12/31

Sahan Weerasooriya

Expo Commodities (Pvt) Ltd, together with its member company STAY Naturals (Pvt) Ltd, has been recognized with Merit Awards at the Sri Lanka Export Development Board (EDB) Presidential Export Awards 2024/25, one of the country’s most prestigious platforms celebrating export excellence.

The awards were presented under the categories of Spices and Allied Products and Essential Oils, Oleoresins & Condiments, recognizing the companies’ consistent performance, product quality, and contribution to strengthening Sri Lanka’s presence in global markets.

The recognition reflects Expo Commodities’ continued focus on delivering high-quality, value-added Sri Lankan products while upholding international standards across innovation, sustainability, and responsible sourcing. Through STAY Naturals, the group has expanded its reach in key export markets, promoting Sri Lanka’s essential oils, oleoresins, and condiments derived from its rich agricultural heritage to customers worldwide.

The achievement also reflects the collective effort, technical expertise, and commitment of the teams behind the operations, alongside the continued trust of global partners and customers. Expo Commodities (Pvt) Ltd, part of Expo Commodities Global, is strategically focused on driving sustainable export growth and strengthening Sri Lanka’s global positioning as a reliable supplier of high-quality natural products.

Expo Commodities Global is a globally active Agri-commodity enterprise with operations spanning multiple origins including Sri Lanka, Vietnam, Indonesia, Madagascar, Comoros, Egypt, the UAE, India, Germany, and the Netherlands. The company specializes in the production, processing, and export of premium organic and conventional spices, coconut products, essential oils, oleoresins, and value-added agricultural products, delivering consistent quality through integrated and sustainable operations.

Expo Commodities Global and STAY Naturals (Pvt) Ltd are part of Aberdeen Holdings, a diversified Sri Lankan conglomerate with interests across pharmaceuticals, packaging, commodities, transport and logistics, power generation, and digital innovation, supporting long-term growth through strong governance, sustainability, and global market engagement.